“Hello Madam Lee! How can I help you?”
Madam “My dear Puteri, I’m so sorry for calling you here so early on a Sunday. I need your math magic to revive my business.
I would like to know what type of customer I should be targeting. I can cater to all types of people, but I need to know which type of customers bring me the most business. I have some feel about it, but would like to have you to check it.
Also, I would like to identify customer segments that are most attracted to my business. Then I can use both pieces of information to decide what to do.
I collect information from each customer in a survey, can we use this?”
Puteri “Your survey is very valuable. We can do the following”
No 19 – Target customer segmentation and profiling
“We have learned this in Data Analytics. Using the survey information, we can segment your customers into different profiles, and identify how much each group of customers spend. Then you can understand which customer group is most valuable”
No 20 – Project % of target segment retained
“In Stochastic Processes, we learn about Markov processes and the steady state probabilities. In your customer survey, you identify returning customers and new customers. We can develop a transition matrix and then solve the steady state probabilities.
The steady state represents the % of customers you will have in the long run.”
Madam Lee was beaming: "Puteri, I knew it. I knew you could figure it out!"
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